The Mortgage Bankers Association reported a 2.7% drop in total mortgage application volume for the week ending July 10, as the 30-year fixed rate climbed to its highest point in nearly a year.
The MBA reported that the average contract interest rate on conforming 30-year fixed mortgages climbed to 6.65% — its highest reading since August 2025 — up from 6.58% the week before, with points ticking up to 0.67 from 0.64 on loans carrying a 20% down payment, after accounting for the origination fee
Purchase mortgage applications slipped 7% week over week and trailed the comparable period from a year earlier by 2%, the MBA said. “Mortgage applications declined as the 30-year fixed rate increased to 6.65 percent, the highest level since August 2025. Purchase applications were down over the week and dipped below last year’s pace in the week following the July 4th holiday,” Joel Kan, MBA’s vice president and deputy chief economist, said in a statement. Prospective buyers continue to face a difficult market, squeezed by elevated home prices and a thin supply of affordable listings, according to CNBC.
Refinance applications moved in the opposite direction, rising 4% for the week and running 7% above the same period a year ago. Refinances accounted for 43.2% of all mortgage applications, up from a 40.6% share the week before, the MBA said. FHA refinance applications rose 9% and VA refinance applications gained 10%.